The Gov. Jared Polis administration’s Colorado Energy Office and Community Access Enterprise have announced an additional $9 million in funding for the Vehicle Exchange Colorado EV rebate initiative, bringing the rebates to a total of approximately $14.7 million over its first two years.

The program, commonly called Cash for Clunkers, offers point-of-sale rebates to purchase or lease an EV for trading in an old or high-emitting vehicle. Rebates are available for both new and used battery electric and plug-in hybrid electric vehicles. 

A total budget of $5.7 million was available during the program’s first fiscal year. As of June 30, 68% of the 1,301 rebates issued have been redeemed, replacing 879 old or high-emitting vehicles with zero-emission electric vehicles in 39 Colorado counties.

To qualify, Coloradans must have an income less than 80% of the area median income in the county where they live and must trade-in a qualified gas- or diesel-powered vehicle that is at least 12 years old (model year 2012 or older) or fails a Colorado emissions test.

A $6,000 rebate is available to purchase or lease a new EV, and a $4,000 rebate is available to purchase or lease a used EV. Rebate recipients must purchase or lease their EV from an authorized automobile dealer. Additional details about eligibility and how to apply are available on the VXC webpage.

Coloradans who receive a rebate through VXC may also take advantage of other electric-vehicle purchase incentives, including federal and state EV tax credits.